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    Home > Medical News > Medical World News > Pharmaceutical companies frequently encounter listing breakouts, how should investment opportunities be controlled?

    Pharmaceutical companies frequently encounter listing breakouts, how should investment opportunities be controlled?

    • Last Update: 2022-05-07
    • Source: Internet
    • Author: User
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    [Pharmaceutical Network Pharmaceutical Stock Market] Since October this year, many pharmaceutical stocks have broken their listings, including Chengda Bio, Hualan, and Kefu Medical
    .

    For example, on October 28, Chengda Bio finally successfully landed on the Science and Technology Innovation Board, issuing 41.
    65 million shares at an issue price of 110 yuan
    .

    However, the opening price on the first day of listing fell 18.
    19% compared with the issue price to 89.
    99 yuan; the closing price fell 27.
    27% compared with the issue price to 80 yuan
    .

    On November 1, Hualan shares were successfully listed on the Growth Enterprise Market of the Shenzhen Stock Exchange, but the opening announced a break
    .

    It is reported that in this listing, Hualan shares issued a total of 33.
    667 million shares at an issue price of 58.
    08 yuan per share, raising 1.
    955 billion yuan
    .

    However, on the first day of listing, Hualan shares opened at a price of 51.
    55 yuan per share, down 11.
    33% from the issue price and as low as 51.
    5 yuan during the session
    .

       According to the industry, the breakout trend has become popular in A shares, but the breakout listing is just the beginning, and there is a high probability that there will be a "serial hammer" in which the stock price will fall and the valuation will be cut in half
    .

    For example, not long ago, on November 15th, the Beijing Stock Exchange rang the bell, and as of the close of the first day, among the 10 medical-related companies, only two companies’ stocks rose slightly, and the other eight fell to varying degrees.

    .

       In addition, some analysts pointed out that the break of new shares is very common in the US and Hong Kong stocks, but whether the broken shares have no investment value at all, this may not necessarily be the case
    .

    "Faced with the turbulent and ever-changing market, yesterday's hot potato was hot, and today's case of Xiangmomo is not uncommon
    .

    " It is understood that in recent years, many pharmaceutical companies have also broken their listings, but then their stock prices have gone up all the way
    .

       For example, Hebo Pharmaceuticals landed on the Hong Kong Stock Exchange in December 2020, but announced a break on the first day of listing.
    In 2021, the share price of Hebo Pharmaceuticals once hovered around HK$6.
    5 per share, but since November this year, Hebo Pharmaceuticals has The stock price of medicine has been going up all the way, and once stood on the 10 yuan mark, up 65% from the beginning of last month
    .

       Another example is Kintor Pharmaceutical, which was listed in Hong Kong in May 2020 with a IPO price of HK$20.
    15.
    After the listing, the company's share price fell endlessly, and fell to HK$7.
    2 per share in November 2020
    .

    However, from January 10, 2021, Kintor Pharmaceuticals started the way of rising stock prices
    .

    By September 2021, the stock price of Kintor Pharmaceuticals peaked at 90 yuan per share, an increase of nearly 11 times compared with the beginning of the year
    .

       Regarding the problem of pharmaceutical stocks breaking in the market, analysts said that the capital market that has experienced multiple cycles is not terrible, and it is still a sign of a mature market to a certain extent
    .

    In addition, there are many and complex factors that determine the long-term investment value of a company, including valuation, track, pipeline, sales ability, profitability,
    etc.

       As mentioned above, Hebo Pharmaceuticals and Kintor Pharmaceuticals also experienced a market break, but in the later stage, with the good clinical progress of pipeline drugs and high commercialization expectations, the stock prices have also achieved substantial improvement
    .

    Among them, in addition to independent research and development of Hebo Pharmaceuticals, the company can continue to realize the export of drugs through the license out in the future, open the market with the license in, and feed back the enterprise with the license out, which may be the way to realize its value creation
    .

       In the eyes of some investors, some pharmaceutical companies are of good quality in this round of breakouts.
    It is believed that with the commercialization of the R&D pipeline, the stock price and valuation will come back
    .

    If an investor said, "I have been with the company for several years, I am optimistic about the long-term development of the company, even if it breaks, it will not reduce its holdings.

    .

    "
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